Corruption in US$ 500 million Japan funded road program in Sindh. KM Shareef & Co - Nawaz Khan Mandokheil

Corruption in US$ 500 million Japan funded road program in Sindh. KM Shareef & Co - Nawaz Khan Mandokheil

Corruption is endemic in Pakistan and even the media doesn't dare report on the major cases. We all know that the construction industry is rife with corruption, particularly where government funding is involved. US$ 500 million dollars provided by Japan International Cooperation Agency (JICA) to Sindh Works & Services Department is being siphoned by favored firms.

Advertisement

It is a bonanza for the Project Director, Saindad Solangi, who is already a controversial figure whose tenure has been over for years and he continues in the position as a consultant/adviser....clearly because he's a good erarner. One such company involved in the free for all, KM Shareef & Co, owned by Nawaz Khan Mandokheil, is also constructing the Sindh assembly building. Clearly Mr Nawaz Khan has the right connections, he comes from the famous Mandokheils of Zhob who own several of the well known firms in the industry, i.e. SKB, SMC, QKC and dozens of other large firms who have multibillion rupee projects in their name and are growing fat off public funds and corruption.

Advertisement

This company is one of roughly two dozen that pay the Solangis who run the department 20% of the contract value as kick backs out of which around 5% is paid right up front. Another family with dozens of companies eating at the public trough is Sikander Jatoi's D-Baloch and the smaller companies owned by his nephews and relatives. There is no tender process, the firms that were originally prequalified over a year and a half ago are the only ones who're allowed to participate in this program that is supposed to last up till 2015 at least. The department decides who gets which contracts and how many of them and they inform their contractor friends like Mr Nawaz Khan what they're going to do for them this time around.

A few days before the tender, the department calls all contractors and gives each contractor all the tenders for the project they are supposed to win. At the end of the program, the Solangis (and their superiors) walk away with roughly US$ 100 million, these contractors walk away with a similar amount, and the rest is used to develop substandard infrastructure. We the people of Pakistan are going to be left with this debt while these handful of people will get rich.

You might like